With the financial crisis generated many indebted companies and the political instability that has settled in the country a few years ago has collaborated with this scenario. Many companies are having difficulties in keeping themselves running and mostly paying off their creditors and suppliers. The default rate has been growing in recent years and has become a serious problem for our economy. So is it important for you to know which lines of credit serve to bail out companies that are indebted ?
The entrepreneur in this situation should know that there are ways to get around bankruptcy. If you need help, you can go to government or other lines of credit to get a loan and pay off your debts and debts to save your business or venture.
Many credit lines are created to keep the economy spinning and prevent companies, institutions and organizations from falling out. To get an idea, only in 2016 the country had a loss of 2.2 billion reais in the first half alone. So let’s find out how to use the many lines of credit to be able to pay your company’s debts and not be one more in statistics.
What does bankruptcy mean and how does it work?
Bankruptcy is nothing more than a legal process by which the company passes to collect means of payments due to creditors. For a company to consider itself bankrupt, it must stop paying its creditors and be with more debt than the value of its equity. Bankruptcy must be decreed by a judge and, from this, the assets of the company or debtor are alienated so that the creditors can be paid.
When the process of indebtedness of the company occurs, the debts become greater than the equity, the owner must declare bankruptcy. This is a way to protect creditors and the company itself. To save themselves and get back to business, many companies are declaring bankruptcy so they can start on the right foot again.
When you go bankrupt or have multiple debts that you can not afford, there are several ways a company can get back on track. Selling the shares or the company itself is a possibility, but the lines of credit can help you and make these procedures not necessary.
Lines of credit to pay off debts and save your business
You can either make a financing for companies with debt or pick up a working capital to save your business or business. BNDES has a credit line fund just for that. There are also other credit lines that you can use to save it.
Getting the credit offered by the Developer Channel (MPME) is a very simple process. First, you must access the channel. In this channel, you should answer some questions about yourself and your company; you will tell what types of investment you need resources and choose the banks with whom you want to do business.
After completing this form, your request will be sent to the selected banks. You should remember that this line of credit should be used by micro, small and medium-sized enterprises, freight forwarders and rural producers, with annual revenues of up to R $ 300 million. You can also apply for BNDES financing if your company has a higher billing than this one. You can talk to the manager of your bank to see this possibility or directly at the BNDES.
For larger companies, the federal government also has programs to help with recovery. This year the government declared that it has made available a value of about 15 billion reais for BNDES to help in the recovery of these companies. The only prerogative is that the company has a turnover of around 90 million billings per year.
Why use credit lines to save company from bankruptcy?
Using these lines of credit offered by governments to save your business can save your business. Interest rates are lower, longer term of payment and conditions facilitated. In addition, there is not as much bureaucracy as other types of funding.
These lines of credit for the recovery of indebted companies help the country recover economically. The number of unemployed is great, with this line of credit it gets much smaller. Check the lending possibilities. This credit is your right. Do not lose your business because of debt. See if this line of credit is for you and save your business!
Tips for Indebted Companies Out of Suffering
Debt is not always bad. There are many stories of companies that grew up after a debt crisis. Of course this is not at all comfortable and completely destabilizes all those involved and employees. However, there are some tips that can help in this process. One of them is to charge the late customers. In this sense, do not be afraid and cover with consistency!
Other tips that help are: Increase the number of relationship banks to improve the negotiation of financing terms and not risk not to afford resources on the payment dates. Of course, always try to renegotiate the debt. Look for the bank, expose the situation that they can always show you form of getting around the situation and you get off the list of indebted companies. Good luck!